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I was unemployed in 2019/had no wage income. I have long term cap gains and short term (ST) cap gains. I know ST is taxed as ordin income (OI). Do LT gains factor into OI

 
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3 Replies
rjs
Level 15
Level 15

I was unemployed in 2019/had no wage income. I have long term cap gains and short term (ST) cap gains. I know ST is taxed as ordin income (OI). Do LT gains factor into OI

Long-term capital gains are taxed at lower rates than ordinary income. The total income shown on your tax return will include both short-term and long-term capital gains, but the tax calculation will apply lower rates to the long-term capital gains.

 

I was unemployed in 2019/had no wage income. I have long term cap gains and short term (ST) cap gains. I know ST is taxed as ordin income (OI). Do LT gains factor into OI

thanks.

 

But does the cash earned from long term gains also count as (count against) ordinary income as well?

 

I'd assume not, but not sure

rjs
Level 15
Level 15

I was unemployed in 2019/had no wage income. I have long term cap gains and short term (ST) cap gains. I know ST is taxed as ordin income (OI). Do LT gains factor into OI

No, long-term capital gains are not also counted as ordinary income.

 

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